Singapore Telecommunications (Singtel) subsidiary Bharti Airtel has, on Feb 25, entered into an agreement with Vodafone to acquire a 4.7% stake in Indus Towers.
According to the Indian telco, the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea Limited and simultaneously remitted to Indus Towers to clear Vodafone Idea’s outstanding dues.
The acquisition is said to be at an “attractive price representing a significant discount typically available for such large block transactions”. The price was not included in the filing on the Singapore Exchange (SGX) on Feb 25.
Further to the acquisition, Bharti Airtel is protected with a capped price, which is lower than the price for the block of Indus shares sold by Vodafone on Feb 24.
“This shall be value accretive to Bharti Airtel and protect its existing significant shareholding in Indus Towers,” reads the statement.
Bharti, along with its wholly-owned subsidiary Nettle Infrastructure Investments, currently own a 41.73% stake in Indus Towers.
See also: Singtel denies report it is 'exploring options' over Australia unit
Shares in Singtel closed 7 cents higher or 2.77% up at $2.60 on Feb 25.
